(Bloomberg) -- Plug Power Inc. is working with New York officials on possibly creating a federally backed hydrogen hub as states vie for $8 billion in U.S. funding for the clean-fuel projects. 

The federal infrastructure package signed into law last year set aside $8 billion to create at least four hydrogen hubs nationwide, as part of President Joe Biden’s efforts to fight climate change. Companies in each hub would produce and use the clean-burning fuel, which is seen as key to decarbonizing heavy industry. Plug Power, based near Albany, New York, is already building a plant northeast of Buffalo to produce “green hydrogen,” which is stripped from water using renewable electricity and gives off no greenhouse gases during its production or use. Plug also has a facility making electrolyzers - the machines that separate hydrogen from water - in Rochester.

Chief Executive Officer Andy Marsh told analysts Wednesday that the company has been in talks with representatives of Governor Kathy Hochul and Senator Chuck Schumer about incorporating Plug’s plans into a proposal for New York to host one of the hubs. He said he expected the U.S. Department of Energy to issue a request for proposals in the second quarter of this year. And other states are eyeing the same money. During the COP26 climate conference in November, Marsh said, he met with two governors interested in creating hydrogen hubs, although he didn’t name them. Businesses in Pennsylvania are discussing using their state’s natural gas reserves as a source of hydrogen for a hub, as are officials in New Mexico.

“At the moment, you’re seeing groups coming together to think through what their offerings are going to be,” Marsh told analysts during Plug’s annual business update call.

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